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The Department of Trade and Industry (the dti) is in the process of developing new legislation aimed at creating a conducive environment for the growth and sustainability of co-operatives in South Africa.

This was said by the Minister of Trade and Industry, Dr Rob Davies at the celebration of the International Day of Cooperatives hosted by the dti in partnership with the Eastern Cape Department of Economic Development and Environmental Affairs, the National Youth Development Agency (NYDA), and the South African National Apex Co-operative (SANACO) at the Jan Smuts Stadium in East London yesterday.

“There has been a serious need for us as Government to recognise the specific nature of co-operatives and to design programmes geared towards addressing the unique needs of co-operatives. Consequently, the Department embarked on a process of consultation with all stakeholders who include co-operatives themselves, SANACO, and the National Economic Development and Labour Council. These consultations resulted in us developing a new legislation that we will be taking to Parliament soon. The legislation provides for the creation of a new co-operative development agency, co-operative academy to provide training, a co-operative tribunal which will deal with disputes, as well the new co-operative advisory council,” said Davies.

Davies added that the institutions which would be established through the new legislation would enable the dti to inject more support and resources to co-operatives to ensure that they are able to achieve their objectives of job creation, poverty alleviation and economic growth.

Davies also said there was a number of new areas of growth and development that have been identified in the Industrial Policy Action Plan (IPAP2) which would create opportunities for co-operatives. These include agro-processing, aquaculture and organic farming.

He announced that the dti was closed to finalising a youth enterprise development strategy as it had realised that there was a serious need for youth focussed programmes in order to address the challenge of unemployment among young people.

“We are going to ensure that our co-operative and youth development programmes speak to each to each. We will also make sure there is synergy between the efforts and initiatives of the dti and those of the NYDA in such a way that each of us brings our particular focuses and products on the table to assist young people,” said Davies.

The Deputy Chairperson of the National Youth Development Agency Mr Yershen Pillay said the Agency was part of the International Day of Co-operatives celebrations in order to create awareness amongst the young people about the role of co-operatives in facilitating economic development in South Africa.

This year the day was celebrated under the theme “Youth, The Future of Co-operative Enterprise”.

Pillay encouraged young people to establish or join co-operatives in their numbers and create employment for themselves as unemployment among the youth is high.

Five co-operatives who exhibited at the celebration won themselves training and support services vouchers to the value of R50 000 each from the NYDA in the best exhibitor competition. The overall winner, Dipeung Co-operative from Pretoria romped home with an additional cash prize of R20 000.

The International Day of Co-operatives is celebrated worldwide on the first Saturday of July every year.